Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1887-06-21
IMPORTANT FINANCIAL QUESTION.
what Use Shall the Government Make of
its Surplus.

what Use Shall the Government Make of
its Surplus.
NEW YORK, June l6, 18S7-Has the
Government any right 10 purchase bonds
for the sinking fund?
Under the following act of Cons ress
the government has purchased at differ
ent times for its sinking fund $3.50, IO7,-
500 bonds.
SINKING FUND ACT.
The law in regard to the sinking fund
is to be found IN the following provisions
of the Revised Statutes Of the United
States:
Sec. $3.50. There are appropriated, out
Of any moneys IN the Treasury not 9TH
erwise appropriated, for the purposes
hereinafter specified, such sums as may
be necessary for the same respectively;
and such appropriation shall be deemed
permanent annual appropriation.
Sinking fund of l per centum of the
entire debt of the United States, to be
set apart &s q sinking fund for the pur-
chase or payment OF the public debt, in
such manner as the Secretary of the
Treasury shall from time to time direct.
Sec. 1894. The coin paid for the duty
on imported goods shall be set apart as
special fund, and shall be applied as fol-
lows
First-To the payment in coin of the
interest on the bonds and notes OF the
United States.
Second-To the purchase or payment
Of per centum of the entire debt OF the
United States, TO be made within each
fiscal wear, which is to be set apart as
sinking fund, and the interest Of which
shall in like manner be applied to the
purchase or payment of the public debt,
SIS the Secretary OF the Treasury shall
from time to time direct. act Of Feo-
ruary %, 1862
Has the government any right 20 pur-
chase bonds with its surplus?
Under the following acts OF Congress
the government has purchased at differ
ent times VITA its surplus 1924, $50
bonds:
AUTHORITY TO PURCHASE BONDS.
Act July IL, 1852 and may pur
chase. at rates not exceeding that of the
current market, and cost OF purchase not
exceeding One-eighth of one per centum,
any bonds or certificates of debt of the
United States as he may deem advisable.
set of March 3, 1881, authorizing the
Secretary of the Treasury 10 purchase
United States bonds with his surplus
money:
Be it enacted By the Senate and House
of REPRESENTATIVES of the United States OF
America, in Congress assembled: Sec. 2
That the Secretary Of the Treasury m9y
1t any time apply the surplus money in the
Treasury not 9th rwise appropriated, or
50 much thereof as he may consider
proper, to the purchase or redemption Of
F-nI-pd StptpG bonds. OrOVideQ.
That the bonds so purchased OF re
deemed shall constitute no part Of the
sinking fund, out shall be cancelled. Ap-
proved March 3, 1881.
Has the government any right to antic-
ipate q Vear's interest on the deotf
Yes, under the following act of Con
gress:
Joint resolution to authorize the Sec
retarv of the Treasury TO anticipate the
payment OF the interest on the pubic
debt, and for other purposes;
Be it resolved by the Senate and House
OF Representatives Of the United States
Of America, in congress assembled,
tlat the Secretary of the Treasury be
authorized to anticipate the payment Of
interest on the public debt, by perloq
not exceeding one year, from time to
time either with OF without rebate CT
interest upon the coupons, as to MIN
may seem eXpedient; and he Is hereby
authorized TO dispose OF any gold in the
Treasury OF the United States not neces-
ssrv for the payment Of interest on the
pu5Ec debt; provided, that the Obliga-
ION 10 create the sinking fund according
10 the act of February 20, 1852, shall not
be impaired thereby. Approved March
L, 1864.
VIII the government save anything for
the people by giving the bondholders
years interest in advance without re-
Oate:
No, not one cent.
How much does e years. interest
smount to on the whole debt? On the
is, $50, 81 ,05G; on the AS, 1885,
QO0 on the currency 6's, S3,SU,4l0. To
tai, S44 ,63S, 466.
VIII the government save anything Tor
the people by purchasing bonds?
Yes, millions.
Suppose with this S44 G38, 4G6, or one
YEARS. interest, the government should
buy four and & half per cents. They GER
tairly could be purchased without carry
ing the present premium up more than
orr per cent, but suppose thev est al
average of lS5 premium.
The amount of Ole years Interest
would then purchase SOJ, tO5,vyO'
II this $50, 459, 900 AS remained out
standing until September l, 1871, the
earliest date the government can control
them, the government is obliged to pay
PRINCIPAL $50. ............. S55 i1s,UJu
Interest, i years Observation-Disclosures 'io '53
Total ................ ...... SAL o5 538
Or If purchased
PrincjpaI ............... ........... S39459, Oao
I3r- premium OBSERVATION-DISCLOSURES 9,l'9+Ao
Total .........-....... 81, 6@S +76
saving for the people on this amounts 1851 81
And, moreover, we believe if the gov
eminent should announce it would pay
II! premium for this amount of 45s, ii
presented at the assistant treasurer's
office in New York wl;hin thirty days, it
would secure them all, making the saving
for The people
SS,l5G, pa.
The surplus remaining in the Treasury
at The close of this fiscal year, July l, and
the accommodations during the next fiscal
wear will probably amount to near or
quite
n